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Chongqing Beer's growth slowed down in the first half of the year: high-end market was weak and faced strong competitors, and the fire in the backyard added twists and turns

2024-08-16

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Photo: Photographed by Zhou Mengting

Our reporter Zhou Mengting (chinatimes.net.cn) reports from Beijing

Despite the support of football events such as the European Cup and the America's Cup, Chongqing Beer still did not achieve rapid growth in the first half of this year. According to the semi-annual report released on August 14, Chongqing Beer's revenue and net profit in the first half of this year increased by less than 5% year-on-year, hitting a new low in the past three years.

But for Chongqing Beer, the most difficult thing at present is the conflict between it and its joint-venture subsidiary Chongqing Jiawei Beer Co., Ltd. (hereinafter referred to as "Jiawei Beer"). Jiawei Beer is the owner of the right to use the "Mountain City" beer trademark under Chongqing Beer. On August 2, Jiawei Beer issued a statement on its official Weibo account directly pointing out that Carlsberg and its holding Chongqing Beer are killing the "Mountain City" beer brand. As early as October 2023, Jiawei Beer also sued Chongqing Beer in court on the grounds of contract disputes, demanding compensation of 632 million yuan. Chongqing Beer has now filed a counterclaim and the case is still under trial.

At a time when competition in the current beer market is becoming increasingly fierce, whether Chongqing Brewery, which is deeply mired in internal strife, can spare its energy to resist the "attacks" of external competitors has become the focus of market attention.